Blumenthal v. Commissioner
United States Board of Tax Appeals
Where petitioner instructs a broker to sell 1,075 shares of certain stock owned by him and at the same time instructs the broker to purchase the same number of shares in the name of petitioner's wife and pays for the stock by instructing a bank, orally, to charge the purchase price thereof to a bank account opened for that purpose in the name of his wife with a check drawn by him against his own account in the bank, the petitioner all the while retaining control of the…
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Where petitioner instructs a broker to sell 1,075 shares of certain stock owned by him and at the same time instructs the broker to purchase the same number of shares in the name of petitioner's wife and pays for the stock by instructing a bank, orally, to charge the purchase price thereof to a bank account opened for that purpose in the name of his wife with a check drawn by him against his own account in the bank, the petitioner all the while retaining control of the situation, held, such transaction does not constitute a sale resulting in a deductible loss to petitioner.
1Opinion of the Court
*129OPINION.
McMahon:
The question to be determined is whether the petitioner is entitled to a deduction from gross income for the year 1930 of the amount of $31,174.25, which petitioner claims represents a loss resulting from a sale of 1,075 shares of Reynolds Metals Co. *130stock in 1930 oñ the New York Stock Exchange through Montgomery, Scott & Co., brokers, in the regular course of business. The respondent, however, contends that the transaction did not constitute a sale, as the petitioner was the principal in the selling order and also the principal in the buying order, and, further, that if the…
2Cases cited2 opinions
- Clark v. CommissionerUnited States Board of Tax Appeals · 1925
- Esperson v. CommissionerUnited States Board of Tax Appeals · 1928
3Cited by8 opinions
- Brochon v. CommissionerUnited States Board of Tax Appeals · 1934
- Belden v. CommissionerUnited States Board of Tax Appeals · 1934
- Wood v. CommissionerUnited States Board of Tax Appeals · 1935
- Blumenthal v. CommissionerUnited States Board of Tax Appeals · 1934
- Brochon v. CommissionerUnited States Board of Tax Appeals · 1934
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